See All Market Updates LiveThe stock market is showing strong positive momentum on Thursday, May 1, 2025, as investors react to better-than-expected earnings from tech giants and digest recent economic data. Major indexes are rebounding after a volatile April, with futures pointing to significant gains at the opening bell.
Major Market Indexes Rally After Tech Earnings
As of early morning trading on Thursday, May 1, 2025, all major market indexes are poised for substantial gains. Futures tied to the Dow Jones Industrial Average are up 219 points (0.54%), while S&P 500 futures have jumped 1.02%. The tech-heavy Nasdaq Composite is leading the charge with futures gaining 1.43%.
This upward momentum comes after a volatile trading session on Wednesday, where markets staged a remarkable comeback. The Dow Jones recovered nearly 1,000 points from its intraday lows to close with gains of approximately 150 points. At one point during Wednesday’s session, the index had plunged 800 points after disappointing GDP data.
Why Is the Market Up Today?
The primary catalyst for today’s market rally is the impressive earnings reports from tech heavyweights. Meta Platforms (META) and Microsoft (MSFT) both delivered strong quarterly results after Wednesday’s market close, sending their shares soaring in extended trading.
Microsoft shares jumped nearly 7% after reporting better-than-expected revenue and earnings, with particularly strong results from its Azure cloud business. The company also provided upbeat guidance and reaffirmed its commitment to $80 billion in capital expenditures this year, citing overwhelming demand for AI that could lead to capacity challenges by June.
Similarly, Meta Platforms advanced more than 5% after reporting a 35% increase in quarterly profit compared to last year. The company saw a 5% growth in ad impressions while prices rose 10%. Meta also raised its forecast for AI-related spending this year to $64-72 billion from the previously announced $60-65 billion.
Economic Data and Market Concerns
Despite today’s positive sentiment, investors are still processing Wednesday’s concerning economic data. The Commerce Department reported that U.S. gross domestic product fell at an annualized pace of 0.3% in the first quarter of 2025, marking the first quarter of negative growth since Q1 of 2022. Economists had expected a 0.4% gain.
This economic contraction has deepened concerns about the impact of U.S. tariffs and the global trade war. Private payrolls growth also slowed more than expected in April, while the personal consumption expenditure index—the Federal Reserve’s preferred inflation gauge—rose slightly more than expected in March on an annual basis.
Traders are now pricing in a full percentage point interest rate cut by the end of the year from the Federal Reserve, reflecting growing concerns about economic growth.
Major Stocks Making Headlines
Beyond Microsoft and Meta, several other major stocks are making headlines today:
– Nvidia (NVDA): Shares rose approximately 4% in after-hours trading following Microsoft’s and Meta’s announcements of increased AI spending, which bodes well for Nvidia’s AI chip business.
– Tesla (TSLA): Shares fell more than 3% in overnight trading following a Wall Street Journal report that the company’s board has initiated a search for a new chief executive to succeed Elon Musk. However, Tesla Chair Robyn Denholm has dismissed the report as “absolutely false.”
– Qualcomm (QCOM): The chipmaker’s shares declined after providing a tepid revenue forecast.
Upcoming Market Events to Watch
Investors are eagerly awaiting several significant earnings reports and economic data releases that could further impact market direction:
Today’s Key Earnings Reports (May 1, 2025):
– Apple (AAPL): Reporting after market close, with analysts focusing on tariff impacts and supply chain challenges
– Amazon (AMZN): Reporting after market close, with particular attention on AWS cloud performance
– Eli Lilly (LLY): Reporting before market open, with focus on its drug pipeline
– Mastercard (MA): Reporting before market open
– McDonald’s (MCD): Reporting before market open
– CVS Health (CVS): Reporting before market open
Important Economic Data:
– Today: U.S. Weekly Initial Jobless Claims and April ISM Manufacturing data (expected at 47.9, down from 49.0 in March)
– Tomorrow (May 2): April U.S. jobs report, with Nonfarm payrolls growth expected to dip to +135,000, while the unemployment rate is expected to remain at 4.2%
Global Market Influences
International markets are showing mixed performance today. Japanese markets rose, with the Nikkei 225 increasing by 0.92% after the Bank of Japan held interest rates steady at 0.5%. The central bank also halved its economic growth outlook to 0.5% for this fiscal year and pushed back the timing for reaching its inflation target amid concerns about the global trade war.
Several Asia-Pacific markets, including South Korea, Hong Kong, China, and India, were closed for the Labor Day holiday.
Market Outlook
As we move into May, market sentiment appears to be cautiously optimistic despite economic headwinds. The S&P 500 ended April about 9% off its record close after briefly slipping into bear market territory during the month.
Analysts suggest that while market volatility may persist until more tariff certainty emerges, the sharpest policy swings may be behind us. Investors are advised to focus on strategies that both manage and look through volatility as the market navigates economic uncertainty and the ongoing impacts of trade policies.
With major tech companies demonstrating continued commitment to AI investments and the Federal Reserve potentially pivoting toward rate cuts, the market may find support despite economic growth concerns. However, upcoming economic data and earnings reports will be crucial in determining the market’s direction in the coming weeks.